Paper and Board (Hansard, 15 June 1976)

§ Mr. Varley

I propose to make £23 million available under Section 8 of the Industry Act 1972 for a scheme to assist the paper and board industry and the paper-making machinery manufacturing industry.

The paper and board industry occupies an important position in the United Kingdom economy but is heavily dependent on imported wood pulp and faces strong competition from imports of paper products. Increasing the industry's use of indigenous fibre, especially waste paper, will improve its competitiveness and, by reducing imports, help to bring substantial benefits to the balance of payments. The scheme will provide grants of 25 per cent.—the highest level currently available for this type of scheme —towards the cost of plant, equipment and innovatory processing systems, together with grants of 15 per cent. for associated building work. Grants of 25 per cent. will also be available towards the approved cost of additional storage facilities for waste paper.

The scheme will be operated on a selective basis and only for projects approved in advance by my Department. Stress will be placed on the prospective savings on the balance of payments. The scheme operates from today, and a Press notice is being issued giving further details of the scheme. A Supplementary Estimate will be presented at the first opportunity.

The scheme will help to increase the recycling of one of the most useful of our waste materials, namely, waste paper. It shows the Government's determination to play a full part in reducing waste and conserving valuable resources in our economy and society. This has been an important part of our programme since the publication of the Green Paper "War on Waste" in 1974 and the subsequent setting up of the Waste Management Advisory Council.

In preparing this scheme the Government have taken into account the objective, stressed by the Advisory Group on Waste Paper Recycling and by the Waste 122W Management Advisory Council, of providing those organisations responsible for the collection of waste paper with greater assurance of continuity in demand. Rather than give assistance towards stock-building, the Government have concluded that their most effective contribution towards achieving this objective can be made by encouraging the paper and board industry to invest in capital plant and to expand recycling technology, to increase the potential use and capacity for processing indigenous fibres, especially waste paper, and by assisting the expansion of storage facilities for waste paper. The high levels of grants available under the scheme reflect the importance attached by the Government to these measures.

My Department will continue to play its part in further consideration of the industry's requirements for raw materials, including by the Sector Working Party for Paper and Board and the Waste Management Advisory Council.